CERF Incorporated has entered into an agreement to purchase 100% of the issued and outstanding shares of TRAC Energy Services Ltd., a private oilfield equipment rental company based in Nisku, Alberta which also has offices in Calgary.
The purchase price for the acquisition is $17,813,300, subject to working capital and other normal closing adjustments, payable by cash in the amount of $11,730,113 and by the issuance of 2,027,729 common shares in the capital of CERF Inc. at a deemed price of $3.00 per Common Share. TRAC currently generates about $4,500,000 in EBITDA. The transaction, which is expected to close in early October, 2012, is subject to approval by the TSX Venture Exchange and to other regulatory approvals and is subject to other customary closing conditions.
The existing management team of TRAC, namely, Cameron Miller and Travis Porter, will continue as president and vice president sales and marketing, respectively, of TRAC and thereby manage and grow CERF's new business unit. AltaCorp Capital Inc. is acting as financial advisor to TRAC.